What is the CSRD?

On 21 April 2021, the European Commission adopted a proposal for a Corporate Sustainability Reporting Directive (CSRD), which amends the existing reporting requirements of the Non-Financial Reporting Directive (NFRD) following the objective of net-zero emissions by 2050 in line with the European Green Deal

• The CSRD extends the scope to all large companies and all companies listed on regulated markets (except listed micro-enterprises)

• The CSRD introduces mandatory carbon indicators relative to past, present and future GHG emissions

Companies concerned by the CSRD

Large Companies

250+ employees

+€20M turnover

+€40M balance sheet

Starting 1st of January 2024

SMEs

10 - 250 employees

€10M - €20M turnover

€10M - €40M balance sheet

Starting 1st of January 2027

To comply with the CSRD, Companies are to report on the following topics:

The non-financial reporting should be taken into account in the management report in electronic format (XHMTL) after being submitted to 3rd party mandatory assurance

• Social matters & treatment of employees

• Human rights

• Anti-corruption and bribery

• Diversity on company boards (in terms of age, gender, educational and professional background)

• Description of principal risks related to sustainability matters

• Targets and progress made to achieve those targets

• Roles and responsibilities of management

• Company's sustainability policy including due diligence

• Double-materiality (consider impact of sustainability-related matters on company's value + Process to select material topics for stakeholders + impact of business on environment, people and economy)

• Reporting in line with Sustainable Finance Disclosure Regulation (SFDR) and the EU Taxonomy Regulation

ECONOS's team of French & Romanian experts on Sustainability support companies from all sectors to get in line with the Corporate Sustainability Reporting Directive (CSRD)

What is the SFDR?

On the 6th of April 2021, the European Commission adopted new technical standards to be used by financial market participants when disclosing sustainability-related reporting information, under the Sustainable Finance Disclosures Regulation (SFDR).

Financial Market Participants' (FMPs) reported Scope 3 emissions will now have to include detailed information on the greenhouse gas (GHG) footprint of the companies in their investment portfolio.

Who?

All Financial Market Participants (FMPs), in the EU

• Mandatory for FMPs with more than 500 employees
• Comply or Explain for Companies with <500 employees

When?

From January 1st, 2022 - Scope 1-2 emissions
From January 1st, 2023 – Scope 1-2-3 emissions

FMPs have until the 30th of June 2023 to disclose their GHG emissions.